Instead of land projects and townhouses and villas dominating the entire market, real estate segments in Long An have begun to develop a balanced supply.
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| Lavilla Green City project developed by Tran Anh Group is open for sale in Long An. |
The market begins to balance
Long An is located in the West of Ho Chi Minh City and is also the “extended arm” between Ho Chi Minh City and the southwestern provinces. The Long An real estate market has developed quite early, since 2006 there have been dozens of real estate projects developed by enterprises such as Phuc Khang Corp, Dong Tam Long An…
However, the market officially exploded around 2015, when new brands such as Tran Anh Group, Cat Tuong Group, Thang Loi Group, Five Star International Group… officially entered the market and developed projects. This was a turning point for the market, as projects began to take shape from land subdivision to systematic construction from traffic infrastructure, utilities to product construction.
However, by 2018, the main segments on the market were still subdivided land, townhouses, and villas. In 2019, Tran Anh Group officially launched and built a project of 1,000 low-cost apartments for sale to workers in industrial parks in Duc Hoa district.
In addition, real estate prices also increase every year. In 2010, land prices were at 3-4 million VND/m2, but now they have increased to 25-30 million VND/m2. Townhouse prices have increased from 9 million VND/m2 in 2010 to 50-70 million VND/m2 today.
However, in the market bottom of 2022 - 2023, Long An was also greatly affected, when projects and transactions were "frozen". Entering the first quarter of 2024, the market began to see new projects opening for sale, such as Tran Anh Group launching the next subdivision of the townhouse project called Lavilla Green City in Tan An City, or Nam Long Group opening the Waterpoint project of more than 300 hectares in Ben Luc district.
Market observers say that although the market is growing again, the projects being opened for sale are mainly in the townhouses - villas and land segments. Meanwhile, the segment that is of interest and has a high demand from people, apartments, has not appeared in the past 9 months.
However, in the last months of 2024, the market received good news when 3 projects announced information about launching apartment products. These investors are in the final stages of applying for construction permits, expected to be granted next month.
Specifically, Nam Long Group said that it is expected to launch about 5,000 low-cost apartments at the Waterpoint Project in November 2024. Meanwhile, Cat Tuong Group is preparing to launch the Cat Tuong Phu An Apartment Project, with 2,000 apartments in Duc Hoa District; Seaholdings Real Estate Joint Stock Company will launch the Destino Centro Project in Ben Luc District with 2,000 apartments, priced at about 1 billion VND/apartment.
New plans for 2025
According to the reporter's investigation, real estate enterprises in Long An are focusing on plans to develop large projects in 2025. Specifically, Him Lam Group is taking the final legal steps to be able to implement a super project in Duc Hoa district in 2025. This project has a total area of nearly 215 hectares, providing nearly 2,900 products, including townhouses, villas and social housing. In addition to housing projects, the project also develops public works such as general hospitals, markets, parking lots, commercial service areas, sports fields and schools. The total investment of this project is more than 11,200 billion VND (including compensation costs and resettlement support of nearly 4,200 billion VND).
Ecopark Group Joint Stock Company said it has completed site clearance compensation and will launch the Eco Retreat Long An Project in Ben Luc District in 2025. The project has a scale of over 220 hectares, a total investment of over VND 16,981 billion, including 4,951 new low-rise residential plots, 4,300 high-rise mixed-use apartments, 180 resettlement plots and public works, trees and water surfaces.
Meanwhile, Five Star International Group is looking for partners to launch a subdivision of about 300 hectares in the first quarter of 2025 at the Five Star Eco City Project (Can Giuoc District). This project will develop villa and townhouse products.
Tran Anh Group informed that the Group is applying for a construction permit for a luxury apartment project in Tan An City. Thang Loi Group said that in the first quarter of 2025, it will launch an apartment project with 4,000 apartments in Duc Hoa District, and at the same time launch a townhouse - villa project in Ben Luc District.
Ms. Trang Bui, General Director of Cushman & Wakefield, predicts that the general demand of the Long An real estate market may improve by the end of 2024 and will grow strongly in 2025, because products with completed legal documents, projects with completed infrastructure and development strategies by investors with financial potential will receive much attention from customers. However, this market is still in the process of purification, so customers need to be careful with projects that do not have enough legal documents, and at the same time limit the abuse of financial leverage for investment.
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